Market Closes - November 14, 2017

Corn and soybean futures closed lower, while wheat markets were mixed. Although futures traded steady overnight, prices headed south once the day session opened at 830 am CT. Pressure originated from yesterday’s bearish action in soybean futures with key chart support levels being broken. Improved weather in South America was also cited. Trade reports indicate the speculative funds are near-record short corn futures. The funds were long soybeans a week ago, but probably have been selling since then. The specs are also sizable shorts in wheat futures. Chicago wheat futures rallied on concern that the US wheat crop condition is deteriorating without rain in the Plains. Corn futures dropped to new contract lows.

Cattle futures opened near steady but quickly headed lower and then closed down sharply and near the day’s lows. Futures were pressured by weaker boxed beef values and long liquidation by the speculators. December LC are now at a $3-4/cwt discount to last week’s cash market. Choice dropped 2.14 to 210.67 and Select fell .34 193.49.

Lean Hog futures closed sharply lower including the December LH contract dropping for 10 straight days for a total $8.00 loss. Futures fell due to technical selling and concerns that the cash hog market is headed lower. FOB Plant Pork gained .42 to 81.81 as bellies rose almost 4% and ribs rose 3% while loins dropped nearly 3%.